German child support and tax rulings spark debate

The German Federal Fiscal Court (BFH) has issued a ruling (Az. III R 2/24) regarding the tax-free allowance for childcare, education, or training (BEA-Freibetrag). The court clarified that a parent must provide demonstrable childcare themselves or bear the costs of childcare to claim the allowance. In a specific case, a father was denied the benefit because, although his parents provided regular care for his daughters, the mother had organized the arrangements. The court ruled that childcare provided by third parties can only be attributed to a parent if they personally initiated or co-organized it.

Separately, the Interest Association for Maintenance and Family Law (ISUV) is calling for legislative reform regarding child maintenance. The association argues that current laws do not adequately account for the financial realities of children living regularly in two households. While the Bundestag recently debated family policy issues such as child poverty and maintenance advances, ISUV emphasizes that the costs associated with maintaining two separate residences for a child remain unaddressed in the current legal framework.